Thank you, Mr. Speaker. Mr. Speaker, I rise today to draw attention to a matter that has proven time and time again to be a hindrance in northern development. The matter I refer to, Mr. Speaker, is the cumbersome regulatory process in effect in the Northwest Territories which does absolutely nothing to show prospective developers that the North is open and ready to do business.
Mr. Speaker, I was very disturbed to learn that a large international seismic company by the name of Western Geco is unable to return to Hay River this year due to their uncertainty about our unyielding regulatory process. As a direct result of this, NTCL in Hay River -- a wholly northern company -- has lost a $2.5 million contract, and that is totally unacceptable to me.
Western Geco is an international seismic company that conducts seismic studies and gathers data, which in turn they sell to oil and gas companies. The project in question is the study of the Mackenzie and Liard rivers, and it could be said that this is indeed part of the big picture, that being oil and gas development and the Mackenzie Valley pipeline.
I might add, Mr. Speaker, that Western Geco has conducted these same seismic studies worldwide, in such places as Europe, Asia and the Amazon. Last year alone, Mr. Speaker, Western Geco spent between $5 million and $8 million on this project, and a fair chunk of that was spent in the Hay River area. However, most of it was spent proving that their system is environmentally friendly and it did not kill fish.
But, Mr. Speaker, due to the uncertainty surrounding our regulatory process, Western Geco lost momentum on this project and has reassigned their equipment and personnel to other areas until next year; providing, of course, that they are approved by then.
Mr. Speaker, I would suggest that due to the hoops that companies like Western Geco have to jump through, such as uncertainties on timelines and the length of time to be approved, a review must be undertaken by this government of the Mackenzie Valley Resource Management Act. Mr. Speaker, it is imperative that we as a government be seen as proactive and encourage developers to come and do business in the North. Mr. Speaker, I believe it is crucial that we devote more resources to such groups as the Mackenzie Valley Environmental Impact Review Board so that these long, cumbersome processes are shortened. We need to stop coming up with roadblocks that impede development.
Mr. Speaker, this would go a long way to ensuring that companies such as Western Geco are able to do business in the North, and prove to developers that the North is a realistic place to come and do business. Thank you, Mr. Speaker.
---Applause